MIAL ordered to re-tender duty-free contract at Mumbai

Nicole Mezzasalma

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The Bombay High Court ruling requires the airport operator to issue a new tender for the duty-free stores within eight weeks

The Bombay High Court has ruled that airport operator Mumbai International Airport Limited (MIAL) has to re-tender the duty-free contract at Chhatrapati Shivaji International airport (CSIA) within eight weeks, according to the Daily News & Analysis website. The verdict, following a petition by travel retailer Flemingo International challenging MIAL’s decision not to shortlist it for the retail contract, stipulates that the airport operator is a “state” business despite being registered as a private company as it performs a public function. As such, actions by MIAL can now be challenged in court under the Right to Information Act.

MIAL awarded the Rs5.71bn ($133.6m) contract to design and manage the 24,541sq ft (2,279sq m) duty-free arcade at CSIA terminal 2C to DFS Group as the second highest bidder after cancelling its contract with ITDC-Aldeasa, the original bid winners. However, the High Court stated that “total absence of any reasons in any formal document or evaluation, admitted non-communication of any reasons to the petitioner [Flemingo] and contradictory untenable stands taken in different affidavits by MIAL clearly shows that it has acted in an arbitrary manner in short-listing entities”.

DFS opened its first stores at CSIA in March. MIAL comprises a consortium led by Indian construction company GVK, which holds a 74% share in the airport, and Airports Authority of India, which holds the remainder.